Retain or regret: Winning the talent tug-of-warby Murali Santhanam, CHRO, AscentHR

Proactive strategies in growth, management, and support are key to retaining top talent. Addressing employees’ professional and personal needs builds loyalty and strengthens the workforce.

Employees are the oxygen of any organisation. They drive innovation, uphold values, and maintain operational flow. They are an indispensable force that breathes life into every aspect of a business. While most organisations hope for long-term employee tenure, it is crucial to recognise that not everyone will stay indefinitely, regardless of the company’s quality. Employees may leave an organisation for various reasons.

Retaining employees and fostering long tenures are essential for organisations as they help accumulate and preserve tribal knowledge. This deep, informal expertise, developed over the years, enhances efficiency and innovation as experienced employees understand unique internal processes and historical contexts. Long-term employees provide stability, reducing the costs and disruptions associated with high turnover. Their institutional memory supports better decision-making and mentorship, fostering a cohesive and knowledgeable workforce. This continuity strengthens customer relationships and upholds organisational culture, ensuring sustained growth and competitive advantage. Retaining employees nurtures a repository of invaluable expertise that propels the organisation forward.

Reasons employees choose to leave and how to prevent it:

Lack of growth

Candidates join an organisation with hopes for career growth and financial independence. However, when employers fail to recognise or reward employees’ work, dissatisfaction with the nine-to-six routine sets in. Unlike the baby boomer generation that valued job security, millennials and Gen Z prioritise growth and resist monotony. To prevent attrition, employers should create an environment that fosters professional development and recognises achievements.

Poor management

The saying, “People don’t leave organisations; they leave managers,” holds true. Employees are more likely to resign if they face micromanagement or toxic behaviour from managers. Micromanagement can be seen as a form of workplace bullying. While some managers may act this way under pressure from their superiors, others may do so without reason. Companies should encourage employees to share feedback about their managers and take action if needed. Training for managers and, in severe cases, disciplinary actions can help curb toxic behaviours and improve the work environment.

Company culture

A successful company culture benefits from long employee tenures, which retain crucial knowledge and foster strong relationships. However, a company that enforces counter-productive rules or fails to prioritise employee engagement, inclusivity, and gender equality risks higher turnover. Organisations should build a culture where employees feel valued and supported, which in turn nurtures loyalty and growth.

Career development opportunities

Career development opportunities are vital for retaining employees and offering pathways for skill enhancement and progression. Companies that invest in training, mentorship, and advancement programs show commitment to employee success. This approach fosters loyalty, enhances retention rates, and builds a skilled, motivated workforce.

Compensation and benefits

In today’s competitive job market, fair compensation based on skills and experience is crucial. Companies that prioritise transparent communication, performance-based bonuses, and regular salary increases can significantly enhance employee satisfaction. This approach boosts morale, loyalty, and productivity.

Job security

Mass layoffs and cost-cutting measures can erode job security, pushing talented professionals to seek more stable opportunities. To address this, companies should focus on long-term growth through innovation and efficiency, ensuring employees feel secure in their roles. Job security encourages dedication and productivity, reducing turnover and fostering loyalty.

Balancing passion and responsibilities

Even in positive work environments, employees may leave if their roles do not align with their passions. For instance, a software developer promoted to a managerial position may miss hands-on coding. Organisations should enable employees to engage in work that excites them, even within broader responsibilities. This helps maintain job satisfaction and retain motivated, engaged employees.

Supporting personal circumstances

Employees, particularly women, may leave due to personal obligations such as marriage, family responsibilities, health issues, or relocation. Providing flexible work-from-home options and comprehensive health support can make a difference. By supporting employees through personal challenges, organisations can enhance loyalty and reduce turnover.